Industry Analysis & Industry Trends
Due to traditional Chinese dietary patterns and lower living standards, the routine consumption of dairy products is limited across the country. China is currently the third-largest dairy producer in the world, after India and the United States. However, per capita consumption of dairy products in China is less than one-quarter of the global average and lower than in many other developing countries. Moreover, dairy product consumption varies considerably across China. Consumption in rural regions is less than 10.0% of that in urban areas.
After strong and steady growth for more than a decade, China's dairy industries were severely affected by the melamine scandal of September 2008, when melamine was found in infant formula and other milk products.... purchase to read more
Industry Report - Industry Investment Chapter
Overall, for every dollar spent on wages, about 48 cents are invested in capital in this industry. However, dairy product producers in China vary greatly in scale and small producers spend less for capital and technology, and spend more on labor. These small producers have the advantage of low transportation costs and packaging as they usually occupy market shares only within particular towns and counties. The mechanization level will rise in the future, due to increasing competition from large enterprises and foreign companies, and as small- and medium-sized enterprises are purchased by large or foreign companies... purchase to read more